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It's Time to End the Telephone Excise Tax

All Members United States Senate Washington, DC 20510 June 29, 2005 Dear Senator:

This week, Sen. Rick Santorum (R-PA) introduced S. 1321, which would amend the Internal Revenue Code of 1986 to repeal the federal excise tax on telephone and other communications services. The undersigned organizations strongly urge you to cosponsor and support S. 1321, and bring an end to an antiquated and highly regressive tax that has stifled telecommunications for more than a century.

The federal excise tax on telephones was first enacted in 1898 as a “temporary” tax for the purpose of funding the Spanish-American War. While the war lasted only four months, the tax is still with us, despite unsuccessful or short-lived efforts to repeal it. Congress has passed phaseouts of the tax on numerous occasions, only to reinstate the tax at a later time.

Since only a handful of the wealthiest Americans owned telephones in 1898, the tax was also billed as a “luxury tax.” However, in 2005 there are more telephones in America than people, and the tax represents the greatest share of the income of low-income and minority households.

Despite erroneous claims to the contrary, the federal excise tax does not fund any specific purpose, but instead goes into the general fund. In 2000, the House passed legislation repealing the tax by a vote of 420-2, and both houses of Congress passed appropriations legislation including the repeal in the same year, only to meet the veto pen of President Bill Clinton.

It is past time Congress repeal this antiquated, unfair and unpopular tax, and we strongly urge you to cosponsor and support S. 1321.

FreedomWorks has signed on to the following coalition letter (organized by Americans for Tax Reform) to ask Congress to assert its authority to halt the FCC's rule-making process with regard to its proposed Net Neutrality regulation.

FreedomWorks has signed the following coalition letter, giving recommendations to the House leaders and Rules Committee on revisions to the USA Freedom Act that would more effectively protect Americans from the NSA's warrantless metadata collection. The letter was organized by the Center for Democracy and Technology.

FreedomWorks and 59 other major conservative and free market groups have signed onto the following coalition letter by American Commitment, urging Congress to pass the Stop Targeting of Political Beliefs by the IRS Act, H.R. 3865.

FreedomWorks has signed on to the following coalition letter from the Conservative Action Project.Conservative Leaders to Congress: Reject this Washington Deal "Make no mistake, a vote for a deal like this is a vote to move forward with Obamacare."

September 24, 2013The Honorable David VitterU.S. Senate515 Hart Senate Office BuildingWashington DC 20510Dear Senator Vitter,The undersigned organizations represent millions of Americans, all of whom believe in the principle of equal treatment under the law. That’s why we write in strong support of your legislation, S. 1497, The No Washington Exemption Act, which would restore this critical concept and make Congress subject to the same rules and regulations as millions of other Americans on the exchanges under the new health care law.

FreedomWorks has signed the following coalition letter in support of defunding ObamaCare:Dear Speaker Boehner and Majority Leader Cantor,We the undersigned organizations and individuals urge House Republicans to include language fully defunding Obamacare when they consider their upcoming legislation to fund the government for Fiscal Year 2014.